HYPER inflation just around the corner? fed Is Paying Banks NOT To Lend 1.8 Trillion

http://michaelsnyder.mensnewsdaily....-1-8-trillion-dollars-to-the-american-people/
.i am telling yah there no raises in personal income corporations are not willing to open there fat wallets, inflation is being squashed by the fed go figure that. hyper inflation is going to happen and roar like a lion when it comes

 

You know, various people have been saying "hyperinflation is right around the corner!" for the last 4 years. Meanwhile, Keynesian economists have been pointing out that increasing the money supply would not cause major inflation during a liquidity trap. Four years in, their models have held up, and hyperinflation is nowhere to be found.

 

America is burdened by huge unproductive low IQ minorities. They only contribute to
our downfall. Fast losing our ability to compete in global markets.

 

more like 40 years

these nut cases have always been around

some of them are just crazy, some are dumb kids and others are goldbug pawns

really?


2012 gdp $millions

1) usa - 15,684,750

2) china - 8,227,037

3) japan - 5,963,969

4) germany - 3,400,579

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

The economy of the United States is the world's largest single national economy. The United States' nominal GDP was estimated to be $15.7 trillion in 2012, approximately a quarter of nominal global GDP. Its GDP at purchasing power parity is also the largest of any single country in the world, approximately a fifth of global GDP at purchasing power parity. The United States has a mixed economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate, and high levels of research and capital investment.

http://en.wikipedia.org/wiki/Economy_of_the_United_States

 

The two best commentators on this general topic I've seen in this forum are akphidelt2007, and Iriemon, neither of whom have weighed in here yet. To be clear, I don't like the entire idea of any damned "central bank", even though it has legally been in existence for exactly 100 years (thanks to the "progressive" Democrats of the day). That said, akphidelt2007 makes it easier to understand the way that the Fed (or any other "central bank") works with banks, as we peons understand them.

I have raised hell about the Fed churning out trillion of worthless new dollars beginning in August 2007, and they did -- but, it was "BANK MONEY", not "money-money", in the sense that we peons understand "money". I know this sounds like horse****, but I now believe it is factually true! And, to your point about inflation, the reason that we haven't seen the inflation (yet) is that "bank money" does not get released in the "money supply", as we peons deal with it.

My guess is, that like me, you remember all too well the horrible ravages of "Stagflation" from the early 70's up to about 1984. Now, THAT was truly awful, and in its own way, much worse than our current economic troubles (although the "Great Recession" actually ended four years ago). Well, in a nutshell, what the Fed does today is simply to try to stimulate growth, period. You could argue that this stinks because it is crass manipulation and a deliberate exercise in "picking winners and losers" and I would not argue with you. You could also argue that the investment bankers and portfolio pushers who caused this "Great Recession" are being protected and rescued by the Fed, and again, I could not argue with you. But we're stuck with it, and so we go bumbling on, from one bubble/recession cycle to the next, and the next, lest the whole thing come crashing down at our feet. Like the U. S. Tax Code that enables so much of the obvious injustice in our system, this strange symbiotic relationship between central banks and peon-banks isn't going to change, no matter which political faction in power....

 

Interest rates are rising.

As this lay "economist" reads the tea leaves, the persistently tepid economy is why inflation hasn't exploded....

specifically, the thing that has, is, and will keep the inflation bomb from going off is if the great unwashed, on balance, can't qualify to take out bank loans because of destroyed credit, maxed out credit, unemployment/underemployment issues, etc....or [the smart ones] won't take out bank loans because of continuing uncertainty in the weak economy....personal job security fears, national debt/deficits (looming and unavoidable tax hikes), Obamacare (self explanatory), etc.

Which is where we are.

Why do I think this?..... for one thing, Demand + Scarcity = Inflation. Over the past five years, "Supply" has adjusted down to accommodate weak economy/unemployment inspired lower overall "demand"....if prime interest rates get to levels where banks think rewards outweigh risks, and start trying to lure borrowers in the door with come-ons or looser lending practices.... and borrowers bite.... "supply" will be caught of guard with a spike in credit inspired demand.

Enter the next bubble...then bust.

rinse / repeat...until Zimbabwe.




tick tock tick tock

 

comparing the most productive country on earth to zimbabwe is just looney

 

Is the USA still the most productive country on earth????????

 

inflation will happen, that is just a fact of life, sooner or later it will happen, can't keep the cork in it forever

 

I agree its like a damn right now.... You cannot have the housing bubble... I mean the over printing of money go on forever. There will be consequences...

 

yes it is and by far

from post #4 above

2012 gdp $millions

1) usa - 15,684,750

2) china - 8,227,037

 

but your missing the key problem with the fed now there making money less valuable with the stimulus going on forever like, the only reson we havent see hyper inflation is Europe and japans yen is falling.
http://www.rbnz.govt.nz/challenge/resources/2970552.html

http://www.reuters.com/article/2013/07/05/us-markets-forex-idUSBRE95900820130705

 

I am sure when the inflation does come, Liberal economists will be trying to blame it on something else.
They never take responsibility for the problems their policies have caused.

 

I wouldn't get my economic news and investment tips from some guy on the internet named "trucker."

 

Part of the reason is that the inflation already happened during the Bubble. Naturally, when the bubble popped, there should have been deflation back to how things were before, but the Federal Reserve Bank would not allow this to happen.

What I mean is that, during the bubble, prices started going up with rising incomes, but afterwards, when incomes fell, prices remained at their previous highs, when they shouldn't have. Remember, the Federal Reserve was talking about "the dangers of deflation", they pumped lots of money out, devaluing the dollar to prop up asset prices.

But in any case, it is still going to be a disaster when the government finally tries to deal with all that debt that has accumulated.

 

the dollar rose because of employment looks better today currently, but in the late 1920s before the great crash unemployment was 4.2% so , the current dollar rise is totally a false flag

 

names mean that much to yah? ?so say its not employment data that is not driving up the dollar, now then its this?
http://www.marketwatch.com/story/japans-yen-regains-ground-after-sentiment-survey-2013-07-01

now as you see in the late 1920s everyone was working real hard in those factory's night and day around the clock but the bottom still fell out. now here current the news on
http://www.bloomberg.com/news/2013-...-index-increased-to-50-9-in-june-from-49.html

so as you see there focusing on employment again as you see here to pull us out of the recession, but it didnt pull them from the great stockmarket crash that happen in 1929..

 

what will happen is that the fed will use its credit tools to put downward pressure on prices

what a bunch of malarkey

 

people are trying hard to get all caught up on debt, once they do, then the banks will let inflation happen - jmho

 

What you fail to understand is that those "tools" take money to use, and will just result in even more inflation.

And increasing the reserve requirement will not tame inflation like you may think, though it is too complicated to go into this here.

 

you don't know what you're talking about, i understand very well how it works

taking money out of the money supply doesn't result in more inflation

it's just one of the tools available

 

No, I think it's you who does not fully understand how it works.

Except to take this "money supply" (Federal Reserve notes) out of circulation, they have to return reserve assets being held. Because of the structure, doing this can result in some devaluation of the rest of the money supply.

Furthermore, since about half these reserve assets being held by the Federal Reserve are U.S. Treasury bonds, that government debt would have to first be paid off before this part of the money supply could be decreased. Now imagine rising inflation combined with growing government deficits because they need more money to purchase things. All that borrowing causes inflation, so the only way out would be dramatic government spending cuts, as we have seen with the "austerity" measures in Greece which caused widespread outrage.

What you do not understand is that the Federal Reserve bank cannot just set interest rates and the money supply to whatever they want it on a whim. They cannot just magically make the money supply decrease by 10% with an executive order. To accomplish any of this, they have to move other assets or paper liabilities around, and when they do this, it has a way of counteracting what they were attempting to do in the first place. Some people have this mistaken belief that the Federal Reserve can make wealth appear out of nowhere, or set interest rates to whatever they want for as long as they want.

 

ok so the us dollar is just the glue holding the worlds currency race horse together for now, once the world sees through our phony 17 trillion trojan horse and glue bottles are empty, then it all falls apart and know one will want the feds monopoly money anymore
http://moneymorning.com/2013/07/02/why-the-u-s-dollar-is-rising-and-why-its-still-doomed/

 

The Fed is now the biggest hedge fund of all time. It will be fascinating to see what they are willing to do to their own balance sheet if they have to combat inflation.

 

show me a national currency that is more widely accepted and more valuable than the u.s. dollar

all you're doing is showing that you don't know what you're talking about

the fact is, we haven't had an economic depression in over 70 years

you can thank the federal reserve and its credit tools for that